Savannah Resources, the AIM-listed exploration and development company, has seen its share price shoot up 14.29% to 8p in the first few minutes of trading following the news that a transformational first mover leap the company has made into mineral rich Sultanate of Oman following an acquisition of Gentor Resources.
Oman has one of the best preserved copper-rich Ophiolite belts in the world, and the acquisition, which sees Savannah acquire interests in two highly prospective copper-rich blocks in north-east Oman, forms part of Savannah’s growth strategy of building a global multi-commodity exploration, development and ultimately production company. In addition, the company has secured funding of up to US$6.3 million to advance its prospective portfolio.
The latest acquisition complements Savannah’s existing portfolio which includes the Jangamo Heavy Minerals Sands Project in Mozambique located in a world class province adjacent to Rio Tinto’s, major Mutamba mineral sands deposit which, along with another licence area in Mozambique, has an exploration target of 7-12 billion tonnes at 3-4.5% THM.
Importantly, Savannah is well placed to fund the development of both its Oman and Mozambique projects following the investment of up to US$6.3 million by way of a private placement agreement and an issuance of an unsecured convertible with Bergen Global Opportunity Fund, LP, an institutional investor managed by Bergen Asset Management, LLC, a New York asset management firm.
With active exploration programmes planned for both Jangamo (JORC resource targeted for H2 2014) and Savannah’s newly acquired copper portfolio in Oman, and the funds in place to implement them, Savannah has the foundations in place for solid growth in 2014.
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